By Lebone Rodah Mosima
The ANC said on Saturday it was “deeply concerned” about a communications ministry directive published in the Government Gazette that attempted to change empowerment and telecoms rules without going through parliament.
The directive forms part of an ongoing push by Democratic Alliance Communications and Digital Technologies Minister Solly Malatsi, to align ICASA’s licensing approach with the ICT Sector Code and to recognise “equity equivalent” investment programmes as an alternative way for multinationals to meet empowerment objectives.
The directive was signed on Thursday and published on Friday.
It instructs telecoms regulator ICASA on the application of broad-based black economic empowerment (B-BBEE) rules in the information and communications technology sector.
“The ANC stresses that no minister may amend or suspend legislation via a policy directive,” the party said.
It said laws including the Electronic Communications Act and the B-BBEE Act “can only be changed through parliament following public participation”.
Attempts to do so through directives was “a serious overreach of executive power,” it said.
“Of particular concern is the Gazette’s proposal to create exemptions or alternative compliance mechanisms to the 30% Historically Disadvantaged Groups (HDG) ownership requirement.”
The ANC said such changes would allow “foreign satellite providers like Starlink” to bypass “core transformation obligations”.
The Electronic Communications Act requires ICASA, when licensing, to include a minimum equity ownership condition for historically disadvantaged groups of not less than 30%, unless replaced or varied through specified regulatory mechanisms.
Malatsi’s directive would allow foreign-owned communications firms, including satellite internet providers such as Elon Musk’s Starlink, to meet empowerment requirements through “equity equivalent” investment programmes instead of selling 30% of equity in a local subsidiary to historically disadvantaged groups.
Starlink, a low-earth-orbit satellite broadband service owned by SpaceX, has long expressed interest in operating in South Africa, but has faced regulatory and licensing hurdles, including the sector’s empowerment ownership requirements.
The ANC said the minister claimed to have received 19,000 submissions on the draft policy directive and that 90% supported it, but the party questioned how the submissions were counted and verified.
The ANC called on parliament’s Portfolio Committee on Communications and Digital Technologies “to urgently hold the minister accountable for the legality, intent, and consequences of the Gazette,” and urged ICASA to “refuse any directive inconsistent with the law”.
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